Good Afternoon Entrepreneur - I've recently started an IT recruiting firm and I have went back and forth on if I should file as an LLC or a S-corp. I see many benefits to each. The number one item that is keeping me from going with an LLC is the 15.3% self employment tax and the 2% medicare tax saved that is saved with S-Corps. I am the employee at the moment and will be for at least another year. I work out of my home and my startup costs are less than 15,000. Not counting the opportuntiy lost (Salary and bonus) of not working for another firm. Any insight on this subject would be greatly appreciated.